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Below the Quote on Gold Commentary 12th June 2025 by Mr. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd 

Gold prices rose on the back of cooler-than-expected U.S. inflation numbers, strengthening investor expectations that the Federal Reserve would start cutting interest rates by September. Data showed the CPI increased 0.1% last month after rising 0.2% in April, against the estimates of 0.2% and increasing 2.5% year-on-year. Traders are currently pricing in a 68% chance of an interest-rate cut by the U.S. central bank in September, according to the CME FedWatch tool.  On the trade front, U.S. President Donald Trump, opens new tab said a deal with China was done, with Beijing supplying magnets and rare earth minerals, while Washington would allow Chinese students at its colleges and universities. Meanwhile, US officials mentioned that Israel could be ready to launch an operation in Iran, increasing the geo-political tensions. Focus now shifts to US PPI data scheduled later in the day.

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